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Sami Labs acquires KCP Biotech for Rs. 5 cr, set to augment production capacity by 60-75 tonnes a day
Nandita Vijay, Bengaluru | Thursday, November 13, 2014, 08:00 Hrs  [IST]

Sami Labs has now charted the inorganic growth path by acquiring KCP Biotech which is part of the 73-year old diversified business conglomerate KCP Group in Hyderabad.

According to VG Nair, Group CEO, SAMI Group, the deal value is Rs. 5 crore and the funding source is through the internal accruals of the Rs. 600 crore company.  

With the addition of this ultra-modern manufacturing facility, which is ISO certified unit situated at the SP Biotech Park Genome Valley, Hyderabad, Sami will now have the big advantage to be manning a total of seven manufacturing units across the globe.

The reason for the sale of KCP Biotech was that it wanted to hive off all non-core businesses and focus on its core areas like cement among others, Dr. AV Sivaramprasad, executive president, KCP Group told Pharmabiz in a telecon.

The Bengaluru-based Sami Labs, which manufactures and markets phytonutrients and standardised herbal extracts, specialty fine chemicals, and organic intermediates used in the nutritional, pharmaceutical and food industries, gets a headstart to strengthen its business, besides getting a foothold in the biotech market.

The new facility is spread across 5 acres in Genome Valley with ultra-modern technology and world-class quality stringency.  Besides, it is poised to lead product innovation for the pharmaceutical segment.

Recently, Sami Labs has been awarded with the prestigious Pharmexcil Outstanding Exports Performance Award 2013-14 in the Herbals Category and Silver Patent Award in recognition of commendable contribution in Herbals/Nutraceuticals Category during the 10th Annual Pharmexcil Meet in Hyderabad.

“We have been diligently working towards increasing our supply chain as we have been witnessing an increased level of acceptance for our line of products in the Indian market. With this new addition, we are expecting our output tonnage capacity to go up by 60 to 75 tonnes per day. The next step is to add new products to our kitty of existing ones which will allow us to accelerate new products to market ensuring quality standards” said Dr. Muhammed Majeed, founder and managing director, Sami Labs Ltd.  

Dr. Majeed in 1988 set up Sabinsa Corporation in the US with the objective to import and market generic drugs for the drug molecules coming off patent. Very soon he introduced into the US market a new line of products based on Indian herbal plants. In  1991, Sami Labs opened in Bengaluru with a  research and development facility. In  2002, the merger of Sabinsa Corporation with Sami led to the formation of an Indian multinational health science company.  To cater to the expanding global market, Sami Labs has fully owned subsidiaries in USA, Europe, Japan, Australia, Malaysia, Philippines, Vietnam, UAE, China, Russia and South Korea.

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